Video sharing platform YouTube’s creator ecosystem generated ”considerable” economic value and contributed an estimated Rs 6,800 crore to the Indian economy in 2020, according to a report released on Thursday.
The report by Oxford Economics, an independent consulting firm, assessed YouTube’s economic, societal, and cultural impact in India.
The report shows ”YouTube’s growing creator ecosystem generated considerable economic value, contributing Rs 6,800 crore to the Indian GDP and supporting 6,83,900 full-time equivalent jobs in India in 2020”, YouTube said releasing the findings at a virtual briefing.
The study by Oxford Economics combines YouTube-driven advertising revenues, with other related revenues, such as non-advertising revenues (such as subscriptions and alternative monetisation), and off-platform revenues (fan-meetups and sponsorships). It estimates YouTube’s economic impact based on direct impact (profits and wages earned by creators and their teams), indirect impact (generated by the spending it stimulates in the broader Indian supply chain), and induced impact (generated by the wage costs of those employed by the creator ecosystem).
YouTube said that in addition to the revenue generated on the platform, a creator’s presence can help them get a global fanbase, and explore multiple revenue streams via brand partnerships, live performance and other avenues. These revenue sources not only support jobs and income for creative entrepreneurs but also spur wider activity in supply chains, YouTube said.
Commenting on the report, Ajay Vidyasagar, regional director (Asia-Pacific) of YouTube Partnerships, said: ”The creator economy in the country has the potential to emerge as a soft-power impacting economic growth, job creation, and even cultural influence.” India is a large market for digital and social media companies and has been witnessing strong growth on the back of booming smartphone sales and affordable data rates. The social media users have grown leaps and bounds, and the content creator ecosystem has thrived.
That said, the big social media platforms have drawn flak in the past over hate speech, misinformation and fake news circulating on their platforms, and there have been persistent calls for greater accountability.
Under the IT rules notified last year in the country, large digital platforms (with over five million users) have to publish periodic compliance reports every month, mentioning the details of complaints received and action taken thereon. As per estimates shared by the government last year, the country has 44.8 crore YouTube users, 53 crore WhatsApp users, 41 crore Facebook users, 21 crore use Instagram and 1.75 crore are on Twitter.